If you have been around for a while in the crypto world, you definitely must have heard about Dogecoin. It is presently the biggest meme coin that has ever lived. The coin features the popular Shiba Inu from an internet meme. Although the project was initially created as a joke, it has quickly grown to become one of the greatest altcoins in the market.
Like Bitcoin, Dogecoin also allows easy peer-to-peer transactions in a secured manner. Dogecoin is presently enjoying good media coverage, and that’s has taken many people in the crypto community by surprise. If you are thinking of buying DOGE and adding it to your portfolio this year, you will want to learn some important things about the meme coin. So, in this post, we will talk about the biggest meme of all time; Dogecoin.
Though Started As a Joke, It Is Now a Phenomenon
Dogecoin was created in December 2013 by two software engineers, Jackson Palmer and Billy Markus. The coin was named after the popular Japanese dog, Shiba Inu meme called Doge. Though it was created to be just another internet joke at that time, it quickly turned into a project with a thriving community.
Today, Dogecoin has a huge community behind it, including several celebrities like Elon Musk and Snoop Dog, amongst several others. In fact, one of the driving factors behind the success of Dogecoin was the publicity it received from the tweets of Elon Musk. Because of that, the Dogecoin community has affectionately named him the “CEO of Dogecoin.”
What Problems Does Dogecoin Solve?
Just like many first-generation cryptocurrencies in the market, Dogecoin was very basic in its functionality. Unlike cryptos like Ethereum, it doesn’t pack many features like smart contracts and Dapps development. It simply offers a secure network where peer-to-peer transactions can be done safely and securely without the involvement of any third party.
But more than that, Dogecoin also has this unique feature, which is likely responsible for its uniqueness in the market. And that is being able to spread goodwill and fun throughout the crypto community. It wasn’t created to provide a viable alternative to Bitcoin or to compete with big players in the market. It was simply created to be fun.
What Are Some Benefits of Dogecoin?
Dogecoin comes with a wide variety of benefits. One is the ability to be used to quickly and securely send value to anyone across the globe – just like Bitcoin. And talking about that part, Dogecoin has been doing really well, which is further facilitating its adoption across the globe.
Again, like Bitcoin and some other cryptocurrencies, Dogecoin is a secure network that provides real-time consensus. That way, it is almost impossible for hackers to gain unauthorized access into the blockchain.
How Does Dogecoin Work?
Closely looking at Dogecoin, one would quickly notice close similarities between the crypto and Bitcoin. In fact, Billy Markus, one of the founders said he literarily copied Bitcoin code to create Dogecoin. But he also further made some adjustments to make the coin a bit unique. One of them is changing mining to digging and reducing the amount of time it takes to add one new block to the Dogecoin blockchain.
Dogecoin uses the Proof-of-Work algorithm like Bitcoin, and that is what it uses to keep the network secure. However, Dogecoin’s PoW system is a bit different from that of Bitcoin. Instead of the normal SHA-256 version that Bitcoin uses, Dogecoin relies on a scrypt technology in its PoW algorithm. That way, it was able to cut down on the amount of power needed to mine the coin.
What Is the Supply Cap of Dogecoin?
Although the cryptocurrency initially started with 100 billion coins in circulation, there is now no limited supply of Dogecoin. But there is a strict regulation on the amount of the coins that can be issued every year – 5 billion coins.
How Is New Dogecoin Gotten?
Dogecoins are also mined – like every other cryptocurrencies using the PoW algorithm. However, instead of having miners here, what you have are diggers. They work hard to add new blocks to the blockchain. Hence they help to validate new transactions on the network and keep the network secure. Compared to Bitcoin, Dogecoin mining is less competitive and doesn’t require any pre-mining activities.
How Do You Buy Dogecoin?
Dogecoin is now a popular cryptocurrency. And so, it is listed in most crypto exchanges together with other cryptos like Bitcoin, Ethereum, Litecoin, etc. When looking to buy DOGE, just find a preferred exchange based on your needs and preferences and make an order right away.
You can also buy Dogecoin from crypto brokers or individuals looking to sell their DOGE. However, you need to be extra careful with these options. While the former requires huge fees on transactions, you can be easily ripped off with the second option.
Again, when you buy your DOGE from an exchange, make sure you don’t leave it there. Get a secure wallet and immediately transfer the coin into the wallet. There are many wallets out there that support Dogecoin.
How Do You Store Dogecoin?
As we said, it is not advisable to leave your Dogecoin on any exchange after making a purchase. It is better to take it off the platform. So, where do you store your Dogecoins? You will need a secure crypto wallet that supports DOGE.
There a many of them out there, including Exodus, Jaxx wallet, and many more. All these are hot wallets that allow you to store your coins in online wallets. At the same time, you can go for cold wallets. These aren’t online wallets and are more secure than hot wallets. Examples of that include Ledger Nano S and Ledger Nano X. Both of them support Dogecoin.